Kingsmen Announces Letter of Intent FOR an Option to Acquire the Almoloya GOLD-Silver Project
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Exploration drives the company.
TSX-V: KNG
OTCQB: KNGRF
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KINGSMEN ANNOUNCES LETTER OF INTENT FOR AN OPTION TO ACQUIRE THE
ALMOLOYA GOLD-SILVER PROJECT IN THE PARRAL MINING DISTRICT, CHIHUAHUA
Vancouver, British Columbia, July 9, 2025 - Kingsmen Resources Ltd. (“Kingsmen” or the “Company”)
(TSXV: KNG), (OTC: KNGRF) (FSE: TUY) is pleased to announce that it has entered into a non-binding letter
of intent dated July 04, 2025 (the “LOI”) for an option to acquire the Almoloya Project (the “Almoloya Project”),
a gold-silver project, located in the Parral Mining District of Chihuahua, Mexico. The Almoloya Project is located
approximately 30 kilometres from the Company’s flagship Las Coloradas silver project.
The Almoloya Project was identified as part of Kingsmen’s ongoing regional exploration programs in the Parral
mining district, which prioritizes historic past producing mines with silver-gold potential and has a focus on
epithermal and carbonate replacement deposits (“CRD”) precious metal systems. The Almoloya Project
represents the culmination of a land consolidation process that has taken over 20 years to complete. The now-
contiguous land package brings together historically fragmented claims, many of which were previously held and
explored by major operators. Extensive historical data from these programs, conducted up until the early 2000s,
is available to Kingsmen and provides a valuable foundation for future exploration. Since that time, the project
has seen no systematic exploration by either junior or major companies, leaving potential untapped in a
prospective and historically productive district.
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Artisanal mining for gold with accessory silver, lead, and zinc, has taken place on a small portion of the Almoloya
Project up until recently. Mining was limited to shallow, near surface mineralization to a maximum depth of
approximately 50 meters.
The Almoloya Project includes the past producing Cigarrero and Las Juliettas mines. The Almoloya Project
represents a consolidation of five mineral claims into a single, contiguous land package covering 866.25 hectares
(2,140.55 acres), with geology prospective for gold and CRD mineralization.
President Scott Emerson commented : “Since we began our regional exploration programs in the Parral Mining
District we have sought out properties of merit and had identified Almoloya as an acquisition target of interest,
particularly since the project had been consolidated and offered district scale potential. With the completion of
our recent financing we moved aggressively to pursue the acquisition of the Almoloya project. This acquisition is
part of our strategy to become the preeminent explorer in the Parral region and aligns with our objective of
bringing new life to properties which have had historical production, through the application of modern day
exploration techniques. The road-accessible Almoloya Project offers near-term potential for the discovery of gold
and CRD deposits. Our current exploration programs are designed to deliver near-term significant discoveries.”
The northwest-trending Julietta structural trend hosts gold mineralization in quartz veins and stockwork hosted in
limestone and marble. There has been limited historic gold production from several old workings, and visible
gold has recently been recovered by artisanal miners. Mineralization comprises native gold, haematite, limonite
with trace amounts of pyrite and malachite. Servicio Geologico Mexicano (SGM; G13-A49) recorded gold values
ranging from 1.7 to 7.8 g/t from old workings on the Julietta structural trend and interpreted the mineralization as
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stockwork-exoskarn related to intrusives mapped locally and also indicated by aeromagnetics (Figure 1).
Figure 1
There is potential for gold-rich oxide and sulphide mineralization along the Julietta structure. This structure is the
primary, immediate target for diamond drilling.
The Cigarrero Mine lies on the north flank of the Sierra Almoloya and is road accessible. Historic reports indicate
that more than twelve orebodies were exploited, with production totalling approximately 1.25 million tonnes of
ore grading 600 g/t Ag, 40% Pb, and 25% Zn, with variable amounts of copper and gold. These high grades were
primarily from secondary lead-zinc oxide material, which, according to historic sources, extended as deep as 400
meters below surface or approximately 150 meters below the valley floor.
Old mine sketches describe orebodies up to 50 meters wide, with even greater vertical dimension. Mining at
Cigarrero ceased in the 1920s after depletion of shallow oxide reserves, as interest in deeper sulphide
mineralization was limited at that time. Historic mining was terminated at the water table.
Geologically, the Sierra Almoloya district consists mainly of massive limestone and alteration equivalents of the
Cretaceous Aurora Formation, which host silver-lead-zinc mineralization at the Naica mine located 40 km to the
north. Structurally, Almoloya sits at the intersection of two major basement features. The first is a NE to ENE
trending structure that extends from the Parral and the Santa Barbara - San Francisco del Oro districts. The second
structure is the reflection of a WNW, major basement feature that may represent the Mojave- Sonora Megashear1.
The Almoloya Project is situated within a large, 14 X 12 km hydrothermal system, with district-scale potential for
large sulphide CRDs, with near-surface oxide potential2.
1Queenston Mining Inc. news release July 8, 2005. 2http://pdf.secdatabase.com/241/0001137171-05-001127.pdf
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Terms of the LOI
The Company has entered into an LOI with arms length parties pursuant to which the Company has the option to
acquire the Amoloya Project (the “Option”). The Company has a 60-day due diligence period under the LOI.
The parties intend that the LOI will be replaced by definitive agreements within 60 days.
The Option may be exercised by the Company paying the Optionors total cash consideration of US $8,625,000
(the “Option Payments”) over 8 years in staged payments from the effective date of the definitive agreements,
with years 5 through 8 payable in the total amount of US $6.5 million. Following the exercise of the Option, the
Company will grant a 2.5% net smelter returns royalty (“NSR”) to the Optionors, with an option for the Company
to repurchase 1% of the NSR for the cash payment of US $3 million.
No finder’s fees or commissions will be paid in connection with the Option.
The Option will be subject to applicable regulatory approvals, including the approval of the TSX Venture
Exchange (“TSXV”) and the satisfaction of certain other closing conditions customary in transactions of this
nature.
Qualified Person
Kieran Downes, Ph.D., P.Geo., a director of Kingsmen and Qualified Person as defined by National Instrument
43-101, has reviewed and approved the scientific and technical disclosure set out in this news release.
About Kingsmen Resources
Kingsmen Resources is a mineral exploration company focused on advancing its 100% held Las Coloradas
Project located in the prolific mining district of Parral Mexico. The project hosts the historic past producing
high-grade silver mine, Las Coloradas. It is considered to be prospective for hosting further precious metal
deposits, being on the same structural and stratigraphic belts that host numerous other, on -trend, high- grade
deposits. In addition, the company has a 1% NSR on the Los Ricos North project operated by GoGold Resources
Inc.in Mexico. The Company’s leaders have extensive experience in the mining and financial sectors. Kingsmen
is a publicly-traded company (TSXV: KNG; OTCQB: KNGRF: FSE: TUY) and is headquartered in Vancouver,
British Columbia.
On behalf of the Board,
“Scott Emerson”
Scott Emerson, President & CEO
Phone: 604- 685-9316
Email: [email protected]
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Forward-Looking Statement:
Certain disclosure contained in this news release may constitute forward -looking information or forward-looking
statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other
matters identified in the Company's public filings. In making the forward-looking statements the Company has applied
certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and
information currently available to the Company. These statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements
to be materially different from any future results, performa nce or achievements expressed or implied by the
statements. These risks and uncertainties include but are not limited to: the political environment in which the Company
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operates continuing to support the development and operation of mining projects; the threat associated with outbreaks of
viruses and infectious diseases; risks related to negative publicity with respect to the Company or the mining industry in
general; planned work programs; permitting; and community relations. Readers are cautioned not to place undue reliance
on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update
or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as
required by law.
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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news.